Accounting setups are used to combine the major groups with general ledger account. There are six accounting setups which allows user to decide which GL accounts you would like to post values from transactions.

1. General Accounting Setup:

This is the area where product and business groups are combined, system will identify the GL accounts based on the group using this matrix structure.

Sl.No Doc No Setup Name Business Accounting Group
Product Accounting Group
1 T001 Trading accounting setup Trading Business (TB) Trading Products(TP)
2 M002 Manufacturing Accounting Setup Manufacturing Business Manufacturing Products

Trading business groups mapped with customer or vendor and trading products group mapped with item.

For example: 

  • A (Customer) mapped with Trading Business(for Business Accounting Group).
  • P1 (Item) mapped with with Trading Product (for Product Accounting group).
  • P2 (item) not mapped with any posting group.
  • P1 and P2 (Items) are sold to A (Customer) for USD 1000 and USD 500 respectively.
Based on the accounting setup, system will identify the corresponding GL accounts based on below the structure.

Doc No Sales a/c  (Income) Purchase a/c (Expenses) COGs A/c (Expenses) Stock Liability A/c (liabilities) Stock Assets A/c     (Assets)
A001 Temp A/c Temp A/c Temp A/c Temp A/c Temp A/c
T001 Sales (Trading) Purchase (Trading) COGs (Trading) Item received but not billed a/c (Trading) Item delivered but not billed a/c (Trading)
M002 Sales Purchase COGs Item received but not billed Item delivered but not billed a/c

Sales entry will be as follows

  • A (customer)  A/c USD 1500 Debit
  • Sales (Trading) A/c USD 1000 Credit
  • Temp (Sales) A/c USD 500 Credit